Sterlite Technologies (STLTECH) Q4 07/08 earnings summary

Executive summary

• FY 2007-08 net revenue reached Rs. 1,685.79 crore, EBITDA Rs. 211.27 crore and PAT Rs. 100.72 crore; YoY growth was 41%, 77% and 98%, respectively.

• Export revenue rose 75% to Rs. 518 crore, or 31% of net revenue; order book stood at Rs. 1,020 crore, representing more than six months of production.

• Manufacturing capacity additions, higher utilization and growth across Telecom and Power supported stronger returns; management planned further capacity expansion to meet demand.

Financial highlights

• Net revenue was Rs. 1,685.79 crore versus Rs. 1,198.15 crore; EBITDA was Rs. 211.27 crore versus Rs. 119.11 crore.

• PAT increased to Rs. 100.72 crore from Rs. 50.86 crore; reported profit in the prior year included tax credit and exceptional income.

• Audited EPS was Rs. 16.08 basic and Rs. 15.46 diluted, versus Rs. 8.59 and Rs. 7.83, respectively, in FY 2006-07.

• Export sales rose to Rs. 518 crore from Rs. 296 crore; export share of net revenue reached 31%.

Outlook and guidance

• Planned annual capacity by 2009: optical fiber 12 million fkm, fiber-optic cable 6 million fkm and power conductors 160,000 MT; optical fiber expansion was expected to start commercial production by June 2009.

• Power conductor capacity was targeted to rise from 115,000 MT to 160,000 MT during FY 2008-09; optical fiber capacity had expanded to 6 million fkm and cable capacity was planned to rise from 2 million to 6 million fkm.

• Most manufacturing units operated near full capacity; exports were a key growth focus, with representative offices planned in the US and Russia.

• The Rs. 1,020 crore order book represented more than six months of production across both businesses.